Douglas Short-Term Rental Rules & Airbnb Laws (2026)
The most investor-friendly town in the Saugatuck area: STRs are allowed in all districts where residential use is permitted, with no caps and no owner-occupancy requirement.
Status: Open to investors. County: Allegan County. Whole-home STRs: Yes. Caps: No caps. Annual cost: $375 for a 3-year certificate (~$125/yr). Lodging taxes: 6% (state use tax only).
Investor takeaway: The low-friction alternative next door to capped Saugatuck — same tourist demand, no caps, no owner-occupancy rule, and a cheap 3-year certificate. If you want Saugatuck-area STR income without the license risk, buy in Douglas.
Last verified July 2026. This page is general information, not legal advice — confirm current requirements directly with the municipality before purchasing.
Douglas at a glance
- Status
- Open to investors
- County
- Allegan County
- Whole-home STRs
- Yes
- Cap / waitlist status
- No caps
- Annual cost
- $375 for a 3-year certificate (~$125/yr)
- Lodging taxes
- 6% (state use tax only)
- STRs allowed
- All districts where residential use is permitted
- Cap?
- None
- Owner-occupancy required?
- No
- Registration
- $375 for a 3-year certificate (~$125/yr) via the Planning & Zoning Administrator
- Fire inspection
- Before issuance and every 36 months; $175 reinspection if failed
- Rental model
- Whole-unit rental to one party only (no room-by-room subletting)
- Local emergency contact
- Required
- Certificate on sale
- Voids on sale — re-registration is administrative (no caps)
- Enforcement
- More than one violation in a calendar year risks revocation
- Lodging taxes
- 6% Michigan state use tax only
Why Douglas is the low-friction alternative to Saugatuck
Douglas sits directly next to Saugatuck and shares the same tourist demand — but its STR ordinance is dramatically simpler. STRs are permitted in every district that allows residential use, there are no caps, and there is no owner-occupancy requirement. If you're priced out of, or capped out of, Saugatuck, Douglas is usually the answer.
How registration works
The city issues STR certificates through the Planning & Zoning Administrator on a 3-year cycle for $375 (roughly $125/year). A fire inspection is required before issuance and every 36 months thereafter, with a $175 reinspection fee if the initial inspection fails. Rentals must be whole-unit to a single party — no room-by-room subletting — and you must maintain a local emergency contact.
Certificates void on sale, but because there are no caps, re-registration by the buyer is a straightforward administrative process. There is no scarcity risk when the property changes hands.
Enforcement and taxes
More than one violation in a calendar year puts the certificate at risk of revocation, so operational discipline matters. Lodging tax is the 6% Michigan state use tax; no county STR tax applies.
Frequently asked questions
Do I need to live in Douglas to run an STR there?
No. There is no owner-occupancy requirement — Douglas allows non-owner-occupied STRs across all districts that permit residential use.
Is there a cap on how many STRs Douglas allows?
No. There are no numeric caps on STR certificates in Douglas.
What does registration cost?
$375 for a 3-year certificate (roughly $125/year), plus a $175 fee if a reinspection is needed.
What happens to the STR certificate when I sell?
It voids at closing, but because there are no caps, the buyer simply re-registers administratively. No scarcity risk on transfer.
Investor takeaway
The low-friction alternative next door to capped Saugatuck — same tourist demand, no caps, no owner-occupancy rule, and a cheap 3-year certificate. If you want Saugatuck-area STR income without the license risk, buy in Douglas.
Sources
Last verified July 2026. General information, not legal advice — confirm current requirements with the municipality before purchasing.
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